High Crude Oil Prices Push Seplat Revenue To $502m

One of Nigeria’s indigenous oil companies, Seplat Energy said the Russian-Ukraine crisis which influenced higher crude oil prices has accelerated its revenue by 70.7 per cent in six months.

The company said revenue from oil and gas sales surged to $527m, an increase from the $308.8m achieved in the first six months of 2021.

Seplat Crude oil revenue went up by 91.7% to $469.2m, up from the $244.8m recorded in 2021.

“Reflecting higher average realised oil prices of $107.35/bbl. for the period (6M 2021: $64.69/bbl.), the increase being mostly attributable to the impact of the conflict in Ukraine on global energy prices,” Seplat said in its Unaudited Financial Statement posted on Thursday.

The total volume of crude lifted in the period was 4.4 MMbbls (million barrels), higher than the 3.9 MMbbls lifted in the first six months of 2021.

But gas revenues of Seplat was down by 9.5 per cent to $57.8m compared to the $63.9m recorded in the corresponding period of 2021.

The fall was “due to lower gas sales volumes of 21.3 Bscf (Billions of standard cubic feet of gas) compared to 21.7 Bscf in 6M 2021, because of lower customer offtake, production stoppages at Oben, as well as outages on the Trans Forcados Pipeline. In addition, the average realised gas price was lower at $2.76/Mscf (6M 2021: 2.86 Mscf).”

Gross profit increased by 208.5 per cent to $274.3m compared to the $88.9m, attributed to higher oil prices.

Crude oil prices crossed $100 per barrel for first time since 2020 when Russia’s Vladimir Putin ordered invasion of Ukraine on 24 February 2022.

In 2020 when Covid-19 hit the global economy, oil prices sold below $20 per barrel.

Roger Brown, Chief Executive Officer, said “Production increased strongly in the second quarter, achieving 52.4 kboepd across our operations, and we expect to maintain higher volumes for the rest of the year now that we plan to export liquids through the more secure Amukpe Escravos Pipeline.

“Having divested our interest in Ubima because of its high production costs and export difficulties, werecently acquired a 95% interest in the Abiala marginal field and plan to begin operations there next year using existing infrastructure in OML 40. This is consistent with the strategy for low-cost, low-risk upstream growth we announced last year.

“We remain confident that our transformational acquisition of MPNU will be approved, adding significant reserves and production capacity that will strongly reinforce Seplat Energy’s position as Nigeria’s leading indigenous oil and gas producer.”